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The US steel scrap market is headed for its second consecutive month of downturn across all grades in June with the onset of the typically quiet summer season ushering in further weakness.
The Trend Indicator tipped into increasingly bearish territory with a posting of 34.4, down from May’s already-negative reading of 35.4. The scrap trends outlook’s prediction model allows for a potential average price drop of 13% in June. Learn more in our latest scrap outlook.
A significant 62.5% of survey participants anticipate that prices will be lower in June versus May while 29% posit that the market could trend sideways over the period. Lower scrap demand is the driving factor behind June’s slated downward correction according to 54.41% of respondents. Find out what US steel scrap buyers, sellers and brokers think about market conditions.
Shredded scrap is expected to underperform its cut and prime counterparts next month. Pre-trade talk that mills will be looking to redress the balance in Midwest shredded scrap prices – which are trending $50 higher per ton than their Southern equivalents in some instances – is likely fueling this expectation.
A lack of robust export options may pull the rug further from under the market for cuts and shred following a period of sequential decline in prices to Turkey. Overall trend consensus rose to 65% in June versus 59% in May, suggesting that the market is increasingly aligned on the direction the market will take. Learn more.
Make sense of the US steel scrap market and track the critical indicators impacting steel scrap price movements in our latest outlook.